Upheld: failure to provide ongoing advice service; lack of informed consent; non-delivery of paid-for service complaint against Quilter Financial Services Limited
Financial Ombudsman decision DRN-6319165 of 2026-05-07T00:00:00+00:00. failure to provide ongoing advice service; lack of informed consent; non-delivery of paid-for service complaint against Quilter Financial Services Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-6319165 |
|---|---|
| Decision date | 2026-05-07T00:00:00+00:00 |
| Firm | Quilter Financial Services Limited |
| Product | pension |
| Claim type | failure to provide ongoing advice service; lack of informed consent; non-delivery of paid-for service |
| Outcome | Upheld |
| Remedy | Quilter must: (1) Refund all OACs deducted since June 2015 plus a return calculated using the FTSE UK Private Investors Income Total Return Index from the date fees were paid to the date of final decision; (2) Pay compensation into Mr B's pension if possible, allowing for charges and tax relief, or as a lump sum with a 15% notional tax reduction if pension payment is not possible; (3) Provide clear calculation details to Mr B; (4) Pay £200 compensation for distress and inconvenience; (5) Pay within 28 days of Mr B's acceptance, with 8% per annum simple interest if payment is delayed beyond 28 days. |
Summary
Mr B complained that Quilter failed to provide ongoing advice services despite charging him ongoing advice charges (OACs) of 0.75% per annum from June 2015. Quilter accepted it had not provided reviews in 2019 and 2020 but argued earlier complaints were time-barred. The ombudsman found Mr B was not informed about what the OACs entitled him to receive, as the documentation only described them as a 'servicing fee' without explanation. Therefore, the complaint was made in time under the three-year awareness rule. On the merits, Quilter provided no evidence of delivering any annual reviews from June 2015 onwards, and Mr B was not in an informed position when agreeing to the charges. The ombudsman upheld the complaint and ordered Quilter to refund all OACs since June 2015 with lost growth calculated using the FTSE UK Private Investors Income Total Return Index, plus £200 compensation for distress and inconvenience.
The Ombudsman's reasoning
The ombudsman found that Mr B was not aware he was entitled to ongoing annual reviews when he agreed to the OACs in June 2015. The documentation provided only described the charge as a 'servicing fee' without explaining what service was included or what Mr B was entitled to receive. While Mr B knew he was paying an OAC, he did not understand this entitled him to annual reviews. Therefore, his complaint about missed reviews from June 2016 onwards was made in time under the three-year rule from when he should reasonably have become aware of his cause for complaint. On the merits, Quilter provided no evidence of delivering the annual reviews due in June 2016, 2017, 2018, 2019, and 2020. Additionally, Mr B was not in an informed position when agreeing to the OACs, as there was no proper explanation of the service, no client agreement, no recommendation letter, and evidence suggesting he may have believed it was merely replacing trail commission. The lack of any contact from the adviser between June 2015 and January 2020 suggests Mr B did not require or value the ongoing advice service.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Quilter Financial Services Limited, all decisions | 46 | 38% |
Source
Read the original decision on the Financial Ombudsman Service website